Noble Corporation plc (NYSE: NOBLE), a leading offshore drilling contractor, has declared a quarterly interim dividend on its A ordinary shares. The company aims to enhance shareholder value by implementing a regular dividend payout alongside its ongoing share repurchase activities. This article provides an overview of the dividend creation announcement and Noble's strategic plans for maximizing shareholder returns.

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Noble Declares Quarterly Dividend

The board of directors of Noble Corporation has approved a quarterly interim dividend of $0.30 per share on its A ordinary shares. Shareholders of record as of the close of business on August 17, 2023, will receive the dividend on September 14, 2023. This initial dividend represents an annualized payout of $1.20 per share. Going forward, Noble intends to pay dividends on a quarterly basis.

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President and CEO's Comments

Robert W. Eifler, President and Chief Executive Officer of Noble Corporation, expressed his satisfaction with initiating regular quarterly dividends alongside the company's ongoing share repurchases. Eifler stated that Noble's strategic focus over the past two years has been on consolidation and establishing a robust platform for generating free cash flow and returning cash to shareholders. The decision to introduce dividends is seen as a logical step in maximizing shareholder value. Eifler emphasized the company's commitment to returning the significant majority of free cash flow to shareholders through dividends and share repurchases, with potential scaling up as cash flow generation continues to grow.

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Future Dividends and Shareholder Returns

While Noble Corporation plans to maintain regular dividend payouts, future dividends and other shareholder returns will be subject to board approval and may be adjusted according to market conditions. The company remains dedicated to returning cash to its shareholders over time, utilizing both dividends and share repurchases as effective instruments.

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Currency Considerations for Shareholders

Dividends payable to Noble shareholders will generally be in U.S. dollars (USD). However, for holders of shares in the form of share entitlements traded on NASDAQ Copenhagen, the dividend payment will be determined based on the exchange rate between the U.S. dollar (USD) and Danish krone (DKK) on a specified date. Share entitlement holders bear the risk associated with fluctuations in exchange rates between USD and DKK.